Peter Hyer of IDEO On How To Use Digital Transformation To Take Your Company To The Next Level

Accelerate change through strategic storytelling. Stories create a shared reality. Celebrating small wins and sharing learnings helps the organization feel a sense of human connection, especially as they may feel turbulent. It’s about empowering people and creating movements within your organization. Think about how you might leverage the power of storytelling to give your people a voice, celebrate their explorations and connect the work to the larger purpose.

As part of our series about “How To Use Digital Transformation To Take Your Company To The Next Level”, I had the pleasure of interviewing Peter Hyer.

As an Executive Portfolio Director at IDEO, Peter focuses on transformation strategy for platform businesses by growing capabilities, cultivating change, developing product strategy, and pushing the edges of media and technology. He works with start-ups and industry incumbents alike to build teams, develop brands, launch products, and grow businesses. With a passion for play and an ecosystem approach to designing human-centered products and services, he helps grow creative leadership and empower change in organizations.

Thank you so much for joining us in this interview series. Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

I’ve always had a deep love of learning. I’ve studied everything from social psychology to computer science, animation, business strategy and much more. This shows up in a wide range of work experiences too, at one point, I even worked as a carpenter and chicken farmer. While working to solve complex client challenges at IDEO, I often think back to all these previous jobs and experiences. They help inform different lenses and new ways of thinking.

While studying nonverbal behavior in college, I realized I was much more interested in how we can positively affect systems and behavior through design, so I found my way to architecture. I enjoyed moving fluidly between abstract ideas and tangible systems and zooming in and out at various levels of detail. Being able to apply that kind of thinking to any range of challenges is one of the things that brought me to IDEO.

For the last eight or so years at IDEO, I’ve helped build our media and technology portfolio. More recently, I’ve been focusing on digital transformation and change management. Our media clients, in particular, are wrestling with a rapidly changing ecosystem. These companies must adopt new mindsets and develop new tools quickly to keep up with drastic shifts. IDEO helps them adapt to new structures by developing products and services in that growth. We also help them explore new markets, channels or audiences to grow business and activate change.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lessons or ‘take aways’ you learned from that?

I have to go way back to my childhood for my first lesson in failure. I was crafty and could pick things up pretty quickly as a kid. So when my local scout chapter was prepping for the annual pinewood derby, I was pretty excited and optimistic about my chances. I had a vision and spent all my time building it out. I carved, sawed and painted that block of wood into something way cooler than the picture on the box. But on the day of the race, it didn’t even leave the gate. I was crushed.

The problem was I didn’t go out to see what my friends were making or what else was out there. I was both fearful and protective of my creativity as if it were a limited resource. In retrospect, this is when I learned the value of prototyping — what we make is a product of inputs we collect, and design is an iterative process. Seeking diverse inputs and prototyping allows us to get new designs across the finish line.

None of us can achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?

One teacher I often think of is Star Trek’s Jean Luc Picard. His generous management style and attention to the growth of his team is something I think of often.

But in this world, someone else who drastically changed the trajectory of my life was the chef of a luxury hotel and restaurant where I worked. Back then, I was at the top of my game as an executive, opening some of the largest food and beverage operations in Las Vegas. I always had a passion for design but working in hospitality is what I knew best. One day the chef stopped me in the hallway and asked, “is this what you want to do?” I was taken aback. He continued, “It’s not too late for you, but that day is approaching. If this is where you want to be, do it. But if not, it’s not too late.” It was an amazing moment, a splash of cold water, that allowed me to think about what mattered to me. It made me realize that I was avoiding doing what I really wanted most. So at that moment, my trajectory changed drastically. Went back to school, went into architecture. Every day I am thankful for that lesson to follow my dream and also grateful to get to use the principles of service design that I bring with me from that career in hospitality.

Is there a particular book, podcast, or film that made a significant impact on you? Can you share a story or explain why it resonated with you so much?

I love musician autobiographies. A recent favorite is Herbie Hancock’s Possibilities. It is a fantastic journey into his creative process, but he also talks about creative confidence and ways of being. You get a behind-the-scenes view into what you may have appreciated from the music and the many distinct cultural moments in music history. I’m always interested in seeing the inner workings of someone’s creative journey and the life experiences that make their work so great.

Extensive research suggests that “purpose-driven businesses” are more successful in many areas. When your company started, what was its vision, what was its purpose?

IDEO began 30+ years ago in Palo Alto, California, by fusing design and engineering practices with human-centered behavioral research. Applying these methods and mindsets to challenges beyond product design has been the foundation of Design Thinking. IDEO’s vision for design thinking was to create a positive impact through design by applying our creative mindsets and skills and teaching others to do the same.

Today, IDEO is known for its human-centered, interdisciplinary approach. We have grown to design not only products, services and experiences but increasingly larger systems for effecting change in organizations. That change of design thinking from making great products and services to creating an impact worldwide drives all our designers today. It is this shared purpose that brings great clients to us as well.

Are you working on any new, exciting projects now? How do you think that might help people?

I work a lot on large transformation challenges in the media and technology space. When we think about the challenges our clients face, it lands squarely on how their ecosystem is changing and how they need to adapt. We help our clients address these challenges by building new offerings, growing audiences, cultivating capabilities, building management systems and piloting new ways of working to get there.

For some clients, this transformation may mean developing new channels, as we see in the evolving business models for streaming media. For others, it may be developing new human-centered interfaces for future technologies that give their customers an enhanced experience or amplified abilities. These kinds of developments can all have implications on what needs to be true for the organization to be able to deliver them. That is where transformation comes in. This kind of ecosystem-led approach means we are designing for humans across the value chain to each part of the system, not only the end experience.

For the benefit of our readers, can you help explain what exactly Digital Transformation means? On a practical level, what does it look like to engage in a Digital Transformation?

Digital transformation uses the tools, methods and ways of working native to agile software development to help companies develop new processes and quickly adapt to changing ecosystems. Of course, these transformations show up for companies differently, but ultimately, implementing successful transformation practices will deliver better value to customers and avoid disruption by learning faster, automating analog systems, and acting more quickly.

Which companies can most benefit from a Digital Transformation?

Every company can benefit from leaning into digital transformation, and I think the dual challenges of COVID-19 and economic uncertainty will further fuel the need for transformation across businesses of all sizes. These integrations can show up in several ways, and some companies have a more challenging road ahead. For example, a digital-first company might benefit by using transformation to erode existing business silos or explore new ways to create value across their ecosystem. Other companies may use this to open up new distribution channels or create smoother user experiences.

As we continue to navigate complex and uncertain times, digital transformation can allow companies to operate quickly and connect directly with customers so that new opportunities are possible and legacy systems don’t stand in the way. Digital tools are enablers, of course, but all this comes down to designing for and with people. Transformation is about behavior change and creating the conditions for learning and growth. As such, the iterative tools of human-centered design are well suited here.

We’d love to hear about your experiences helping others with Digital Transformation. In your experience, how has Digital Transformation helped improve operations, processes and customer experiences? We’d love to hear some stories if possible.

One story that comes to mind is our relationship with Intercorp in Peru. We have been partnering with them across industries for over a decade on their transformational journey. In that time, IDEO has helped Intercorp build innovation capability, embrace digital tools, launch new businesses, and adopt new ways of working to deliver them. This has allowed Intercorp to rise to meet significant needs in education, healthcare and radically shift offerings in their retail businesses. But some of the biggest successes are in the mindset shifts this work has achieved. Of course, digital products alone can’t bear the brunt of transforming the organization, so one of the biggest successes of this relationship has been the investment in Intercorp’s people and generating agile teams with growth mindsets.

Has integrating Digital Transformation been a challenging process for some companies? What are the challenges? How do you help resolve them?

Integrating digital transformation is challenging for every company. Change within an organization is hard, especially when existing systems and muscle memory are often strong. Meanwhile, companies cannot hire fast enough and might lack the skills needed internally. So upskilling a company’s workforce to adopt or create new tools takes a concerted effort, in addition to change management. Companies must take the time to train and grow their talent, as well as erode existing systems to make room for new ones. All of this takes listening and learning.

Human-centered design can help companies implement transformation strategies more smoothly. Communicate purpose and why the changes are necessary. Create feedback loops with your customers, talent, and out in the market. Invest in growing teams with new ways of working through prototyping. Providing talent mobility options can help you grow capability and help your employees apply their new skills more quickly, and accept change more openly.

Based on your experience and success, what are “Five Ways a Company Can Use Digital Transformation To Take It To The Next Level”? Please share a story or an example for each.

The global, social, and societal challenges we face create complexity and uncertainty at a scale never before seen. To thrive in this rapidly changing future, businesses need to be adaptive, resilient and agile. They need to quickly respond to the changing ecosystems and tackle large-scale systemic global problems collectively and responsibly. Companies across industries need to move from linear means of production to agile, scalable networks of teams able to adapt to these changing conditions quickly. There is a lot out there about adopting agile practices and leveraging digital tools, but companies need to invest in both business and culture to address these shifts. Here are five things we’ve learned in helping companies with this:

Transformation isn’t the product of a monolithic program. You don’t just do it, and it’s done. Instead, change comes from creating conditions for success to happen, shifting behaviors, priorities, and capabilities (at multiple scales) with measurable progress.

Identify your ambition and articulate your vision broadly. Communicating shared purpose gives people a reason to believe and can help guide decision-making on what not to do. This is about making choices consistent with your values and creating the conditions for what has to be true to achieve that ambition. Communicating this broadly establishes the condition for your people to see themselves in your company’s future and contribute to it confidently.

Transformation has talent at its core. Digital tools are helpful, but it’s people who make the difference. So think beyond just delivering digital products and services and invest in growing teams with these new capabilities and ways of working. HR is a key ally in rethinking and designing strategy around talent, culture, mindsets shifts, L&D, incentives, and career paths.

Adaptability comes from both being a good listener and being a good learner. Create reliable high-frequency feedback loops with your customers, your talent, and out in the market. Then build in time for reflection to make sure that you aren’t just moving fast but that you are learning and integrating what you’ve learned. Share what you are learning broadly so that others may benefit and build on it.

Accelerate change through strategic storytelling. Stories create a shared reality. Celebrating small wins and sharing learnings helps the organization feel a sense of human connection, especially as they may feel turbulent. It’s about empowering people and creating movements within your organization. Think about how you might leverage the power of storytelling to give your people a voice, celebrate their explorations and connect the work to the larger purpose.

In your opinion, how can companies best create a “culture of innovation” in order to create new competitive advantages?

Harnessing strength inherent in the differences found across the organization is the best way to create a culture of innovation. IDEO works with cross-disciplinary teams and brings designers together with different lived experiences and craft expertise to offer new lenses on a challenge. Setting up our teams to leverage each other’s expertise allows us to go into complex situations grounded with diverse points of view. This approach helps our teams work well together, learn from each other and be flexible when leaning into uncharted territories.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

My daughter reminds me of this often: ‘Worry doesn’t empty tomorrow of its sorrow, it empties today of its strength’ -Corrie ten Boom

Embracing vulnerability, navigating conflict, harnessing the strength in our differences, sharing unfinished work and learning from it. These can be stressful, but they aren’t things to fear; these are things that bring us strength.

How can our readers further follow your work?

You can learn more about IDEO and the impact we make through design at IDEO.com. We also have several case studies and publish new articles on various topics in the IDEO Journal.

Thank you so much for sharing these important insights. We wish you continued success and good health!